How has the coronavirus affected the gambling business?
The online gambling industry was less affected by the Covid-19 crisis, but its negative impacts can still be seen at internet casinos.
The Aftermath of the Pandemic in Gambling
Humanity as a whole goes through difficult times, and the coronavirus pandemic has affected every facet of modern living. No industry is left unharmed, but while the shock crippled some, others only suffered minor setbacks and can be managed. The land-based gambling business was more effective than its online counterpart, with online casinos, bookmakers, and poker rooms having plenty of happy clients. They managed to keep them content, by providing them with special offers, such as no deposit bonus codes Canada 2020, exclusive deals for new depositors, and loyalty programs for active punters.
A devastating blow for land-based gambling operators
Entire businesses were forced to close down during the pandemic, and land-based gambling operators were heavily affected. For a few months, they had no source of income and had to pay wages and cover expenses from their own resources. The state provided little help, so when the venues finally reopened, these gambling operators were already reeling. Opening the doors to the broad audience did help their cause, but highlighted the new obstacles posed by social distancing measures.
Many people who used to frequent casinos often, were deterred by the social distancing rules or were downright frightened by the coronavirus threat. This led to a steep decrease in the number of people gambling, which further affected the revenue of land-based operators. During the lockdown, many punters chose to relocate to online casinos, and they are reluctant to go back. Once they have discovered the convenience of Internet gambling, they are not willing to give the newfound perks away.
Small casinos have small problems, such as the fact that players from the local communities struggle financially and can no longer afford to spend money on games. Major gambling operators have bigger concerns because they can no longer rely on international players. Few people are travelling beyond borders to visit established casinos, such as those scattered across Las Vegas or Macau. These giant casinos have huge operating costs, which can’t be sustained if they don’t have a steady flux of customers.
The Authorities are not Helping
Many industries have benefited from financial stimulus and loans to overcome the pressing matters caused by the coronavirus. The gambling industry, on the other hand, is enjoying very little support, because taxpayers are not keen on helping these businesses. This poses unique problems for companies that were planning to invest in new technologies in 2020 and beyond. It is also a threat to many jobs that rely on online gambling and the traditional gaming industry. Some companies have already announced layoffs and salary cuts, but many are still trying to weather the storm and wait for better days.
In addition to providing little to no financial assistance to gambling businesses, governments from many countries are contemplating restrictive actions. On the one hand, they have plans on increasing the gambling taxes, to bring more money to state coffers. This alone is likely to put a lot of pressure on the already struggling ventures and could lead to several bankruptcies. Any tax hike can push smaller businesses over the cliff, especially those that don’t have savings large enough to keep them afloat.
During the lockdown, many punters increased the amounts wagered online, as well as the time spent gambling over the Internet. This form of entertainment has helped many overcome the stress of being confined to their homes, but also spawned new problems. Authorities are concerned that vulnerable players might end up gambling excessively, so they contemplate new measures. Some consider the prospect of setting deposit limits; others want to prevent players from betting larger amounts. All these measures are frowned upon by the gambling industry, who claims that they will lead to financial ruin.
The bottom line is that the coronavirus crisis has affected the gambling industry, mostly land-based casinos, bookmakers, and poker rooms. The fact that other sectors had it worse is only a pale consolation for the operators struggling to stay afloat and maintain a profitable business.